{"id":371644,"date":"2026-04-09T18:45:19","date_gmt":"2026-04-09T18:45:19","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/371644\/"},"modified":"2026-04-09T18:45:19","modified_gmt":"2026-04-09T18:45:19","slug":"who-runs-the-country-no-board-would-tolerate-this-oliver-hartwich","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/371644\/","title":{"rendered":"Who runs the country? No board would tolerate this \u2013 Oliver Hartwich"},"content":{"rendered":"<p class=\"jfCtLXHy\" style=\"display:none\">That does not mean we need a bigger bureaucracy. It means our ministers are drastically under-supported. In my experience, ministerial advisers are paid well below their public service counterparts, so even senior ministers end up relying on junior or early-career staffers who lack the seniority and institutional weight to challenge a department of thousands.<\/p>\n<p class=\"jfCtLXHy\" style=\"display:none\">A minister who cannot choose the chief executive of their ministry must at least be able to surround themselves with capable people. Our system denies them even that.<\/p>\n<p class=\"jfCtLXHy\" style=\"display:none\">The Ministry of Business, Innovation and Employment (MBIE) reports to 20 different ministers across roughly 233 appropriations and budget categories in 23 portfolios. Nobody is clearly in charge. A Treasury review in 2024 confirmed what anyone looking at those numbers would suspect: coherent management is all but impossible.<\/p>\n<p class=\"jfCtLXHy\" style=\"display:none\">The system rotates chief executives between departments as though running the Department of Corrections were interchangeable with running the Ministry of Primary Industries. A chief executive can be halfway through a five-year term, still learning the basics, and already thinking about their next posting.<\/p>\n<p class=\"jfCtLXHy\" style=\"display:none\">In any private company, a board that treated institutional knowledge as dispensable would not last long. In government, it is standard practice.<\/p>\n<p class=\"jfCtLXHy\" style=\"display:none\">None of this was designed on purpose. The state sector reforms of 1988 put chief executives on fixed-term contracts to make them more accountable to ministers. Instead, it made them more accountable to the commissioner, who controls the reappointment process.<\/p>\n<p class=\"jfCtLXHy\" style=\"display:none\">Each subsequent reform insulated the bureaucracy further. Governments of all stripes have struggled with the consequences, but none has fixed the underlying problem.<\/p>\n<p class=\"jfCtLXHy\" style=\"display:none\">France, Germany, Sweden, Italy and Britain all give their ministers a say over who leads their departments. Elected ministers need people at the top who are committed to delivering the Government\u2019s programme.<\/p>\n<p class=\"jfCtLXHy\" style=\"display:none\">New Zealand is the odd one out, not because we made a deliberate choice but because we never revisited a choice  made in 1988.<\/p>\n<p class=\"jfCtLXHy\" style=\"display:none\">In Germany, ministers appoint their top officials from a qualified pool. Ninety per cent of these appointments come from within the career service, not from party backrooms. When a new Government takes office, the incoming minister replaces the officials at the apex. Everyone else stays.<\/p>\n<p class=\"jfCtLXHy\" style=\"display:none\">The career service below is protected by statute, with permanent tenure and promotion based on merit.<\/p>\n<p class=\"jfCtLXHy\" style=\"display:none\">Germany adds a safeguard that New Zealand lacks. Career officials have a statutory duty to raise concerns when they believe an instruction is unlawful. The duty comes with defined escalation steps and legal protection against reprisal.<\/p>\n<p class=\"jfCtLXHy\" style=\"display:none\">Officials cannot be punished for speaking up. It is written into law, and German courts enforce it.<\/p>\n<p class=\"jfCtLXHy\" style=\"display:none\">Australia tried giving ministers appointment power without that safeguard. Officials could be hired and fired but had no duty to raise legal concerns and little real protection when they did.<\/p>\n<p class=\"jfCtLXHy\" style=\"display:none\">The result was Robodebt, a scheme that illegally raised debts against more than half a million people. Officials at every level either went along with it or looked the other way. Without guardrails, appointment power bred complicity rather than accountability.<\/p>\n<p class=\"jfCtLXHy\" style=\"display:none\">In my new research note, Who Runs the Country?, I examine three international models and argue that a version of Germany\u2019s approach fits New Zealand best.<\/p>\n<p class=\"jfCtLXHy\" style=\"display:none\">Ministers should appoint their chief executives from a qualified pool, with the career service protected by statute beneath them. Officials need a legal obligation to raise concerns when something is wrong, and legal protection when they do.<\/p>\n<p class=\"jfCtLXHy\" style=\"display:none\">No company would let an outside commissioner choose its CEO, staff its leadership team with generalists on rotation, and expect the board to deliver results from a building across town. Yet that is precisely what we ask of our ministers.<\/p>\n<p class=\"jfCtLXHy\" style=\"display:none\">Voters did not elect the Public Service Commissioner. They elected a Government, and they are entitled to expect it can govern.<\/p>\n<p class=\"jfCtLXHy\" style=\"display:none\">Catch up on the debates that dominated the week by signing up to our <a href=\"https:\/\/www.nzherald.co.nz\/my-account\/profile\/newsletters\/?from=cmp\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.nzherald.co.nz\/my-account\/profile\/newsletters\/?from=cmp\">Opinion newsletter<\/a> \u2013 a weekly round-up of our best commentary.<\/p>\n","protected":false},"excerpt":{"rendered":"That does not mean we need a bigger bureaucracy. It means our ministers are drastically under-supported. In my&hellip;\n","protected":false},"author":2,"featured_media":371645,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[14237,17623,52816,2372,34702,674,87228,64375,3937,10704,14903,1656,2841,13796,9828,14768,3938,71,2964,108845,21556,2454,27705,12973,1044,111,43,139,7805,69,29449,21307,193,194271,8808,15556,30203,16708,194273,1361,223,1961,194270,194272,540,1299,15146,6730,1530],"class_list":{"0":"post-371644","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-zealand","8":"tag-accountable","9":"tag-appointed","10":"tag-assumption","11":"tag-board","12":"tag-boards","13":"tag-building","14":"tag-cannot","15":"tag-ceos","16":"tag-chief","17":"tag-choose","18":"tag-commissioner","19":"tag-company","20":"tag-country","21":"tag-description","22":"tag-different","23":"tag-every","24":"tag-executive","25":"tag-from","26":"tag-half","27":"tag-hartwich","28":"tag-independent","29":"tag-industry","30":"tag-instead","31":"tag-knowledge","32":"tag-management","33":"tag-new-zealand","34":"tag-news","35":"tag-newzealand","36":"tag-no","37":"tag-nz","38":"tag-oliver","39":"tag-optional","40":"tag-other","41":"tag-rotates","42":"tag-running","43":"tag-runs","44":"tag-shareholders","45":"tag-skills","46":"tag-subjectmatter","47":"tag-that","48":"tag-the","49":"tag-this","50":"tag-tolerate","51":"tag-transferable","52":"tag-where","53":"tag-who","54":"tag-works","55":"tag-would","56":"tag-years"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/371644","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=371644"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/371644\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/371645"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=371644"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=371644"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=371644"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}